Bulls Battle Bears

By pure luck and sheer fluke, Thursday morning I placed an order for (BAC) stock at $3.93/share. Now remember the previous closing price was around $4.63. At 6am when I was heading out I just convinced myself to place a super low order on money that I was truly willing to risk. This is not what I normally talk about, but I did just put the order and went off for the day.

It was not until later that afternoon, after the stock just fell through the floor did I realize that not only did the order for 1000 shares fill, but the stock rebounded on a volatile day as news that the CEO bought another few hundred shares on the open market along with other executives. This was opposite to what negative press was floating around about a possible nationalization of the bank.

Its still uncertain where this stock is headed with the major emotional swings each day. But Thursday was one lucky day and nothing more than that. I did not expect my order to get filled and was surprised during a break late in the day that I had a big profit on my hands and immediately sold. Yes, it was early as the stock is up significantly afterhours, but again, I just took my profits and ran today. My sell price was $4.83 just before the close.

Total profit on (BAC) = $900

Apart form this gamble trade, if you look at all the stocks I talked about Wednesday, almost all made big gains Thursday. Hopefully the write up came in hand for many of you and enabled for some money in your pockets.

As for the rest of the market here is a summary:

It seems that the auto sector is getting ready to ask for another $25 billion in rescue money. Its not clear where the line is drawn to protect which companies, but I am sure almost everyone is going to ask the government at some point for a handout. Link here. The parts suppliers are feeling the pinch from the trickle affect and without this money will probably collapse.

Sticking with auto news, (F) Ford is thinking of dumping its Volvo unit to a company in China. This could pull in some revenue from the sale of the unit, but you have to think at the loss Ford will take for selling it in a desperate situation in a weak economy. Link here.

Currently in Washington D.C, there is a push to shrink the stimulus package and that is gaining momentum as both political sides would be united in this proposal. This would obviously equate to tighter lending to companies due to limited assets. With the markets currently closed, its going to be interesting to see how all this unfolds at the open once all official details are worked out. Link here.

Retail sales numbers were out Thursday and they were horrible. Its obvious to all that there is a slowdown in consumer spending, but one stock, (WMT) – which I did say yesterday was a good pick, did buck this trend and do well. Link here. Wal-Mart has kept the retail sale number afloat and has the ability to cater to cash strapped consumers. The stock is near its 52week low and is a good long term candidate.

Here is the Thursday market summary to review and utilize towards any Friday plays you might have on deck:

Also, I did mention how (V) was a hot stock and was popping up and have good upward movement. I also said (MA) was a great twin and better pick of the two. (MA) was up largely on Thursday (15%) and its way off its 52 week high. I wish I got into this play Thursday but any small correction (even 5% drop) and I will pick this stock up for a long term play.

Well for Friday, its the same deal, just watching mining (gold), oil, and financial stocks as quick plays. Thursday (XOM) was up and hopefully the trend will continue in this sector Friday. Also, before I forget, if you remember my talking about (GE) falling further when it was around $13/share, its now at another 52 week low of $10.66. I am still keen that this stock will come down further and patiently wait for this to come true. $8 and I will get in on (GE) unless big news comes out otherwise.

Hope you all end this week with a profit!

Happy Investing!

Aman, MBA